Starting a CBD Business: Tips to Enter the Industry
Have you been considering starting your own business in the cannabis industry? What about the CBD industry? The latter is a subset of the former and it’s popularity has skyrocketed in recent years.
CBD, short for cannabidiol, is among hundreds of cannabinoids that are naturally present in the cannabis plant. The other famous cannabinoid is THC (Tetrahydrocannabinol). This is what makes you feel intoxicated.
Cannabidiol, however, does not have any intoxicating effects whatsoever. Instead, it’s loaded with a ton of therapeutic mental and physical health benefits to offer.
While the research is still ongoing, there’s plenty of medical literature such as this one that talks in favor of CBD being incredibly therapeutic.
What CBD Products are Available on the Market?
CBD is a diverse industry that is always evolving. However, the most winning CBD products continue to be these:
- CBD Edibles: These are all the rage in the industry lately. It includes a whole variety of goods like candies, gummies, cookies, and whatnot. Edible products continue to face strict scrutiny from the FDA. But, that hasn’t deterred its popularity from soaring by the day. They continue to remain favorite items on the CBD menu.
- Sublingual Tinctures: Tinctures come in a bottle with a dropper. Being a sublingual means the product can be ingested by placing it directly under the tongue and letting the tongue absorb it to enter the bloodstream.
- Vaporizers – These are also known as vaporizer concentrates. Few examples would be waxes and CBD oils. Typically you would need some kind of an electronic device to heat up the concentrate so you can inhale the CBD content.
- CBD Topicals – These are the items that are directly applied to the skin. Most of these are part of the beauty industry. Products like creams, oils, and sprays fall under this category. The most common use of topicals is to manage localized pain or to use it for a variety of skin conditions like acne, eczema, etc.
The quality of the final product directly connects to the quality of the plant used for processing. For example, IHF LLC Hemp Flower continues to grow finest quality, thoroughly tested, hemp and CBD flowers.
As you see, CBD is a versitle and amazing product. Entering the industry and starting your own CBD business is going to be a fruitful venture, if you are successful.
Let’s take a look at some tips to help you start your business…
Tips to Start a CBD Business
Like any other business, this too is going to require a lot of hard work, effort, and perseverance. There’s always the possibility of running into multiple risks; thanks to the ever-changing regulatory landscape and the other issues that follow it. However, an industry that’s predicted to go through an explosive growth; it might all just be worth it to do the heavy lifting today so you can reap the benefits tomorrow.
Remember, like any other business, you need to follow some basic steps like getting a business plan written, getting insurance, etc. In the CBD industry, you need to be extra vigilant. Make sure to double and triple-check every single thing. Be sure to know your market inside out and be ready to jump through multiple hoops.
Know Your Legal Obligations
You may think that since 2018 Farm Bill has legalized industrial hemp (thus naturally making hemp products like CBD oil legal too); it doesn’t mean that there are not many regulatory considerations in the hemp industry that you need to know.
The bill may have removed CBD from the Controlled Substances list which is overseen by the DEA and essentially placed it under the governance of the FDA (Food and Drug Association). The legal status of the CBD and hemp industry is always changing and is always in a constant state of flux. This gray area often creates unforeseen issues for business owners.
However, the FDA has made it plenty clear that no CBD market should be marketed to have any health benefit. Many restaurants selling CBD-infused beverages and foods are also being cracked down by the FDA.
The key to running a safe and successful CBD business is to know and follow all your legal obligations. Play it safe in an industry that’s highly scrutinized.
Be sure to not devise your product’s marketing strategies around the supposed benefits. Also, do remember to stay updated on all the new developments as and when the FDA rolls them out.
Marketing and Selling Your CBD Product
Marketing a new business can be a bit challenging since CBD products are now available at Walgreens and CVS. Platforms like eBay and Amazon don’t exactly make it easy to sell new products either. On top of that, online marketing is basically nonexistent for the CBD industry.
You always run the risk of having your account suspended or banned. That makes it practically mandatory that you grow your reach organically on the internet which is a long-term strategy and takes time and patience.
Again, the key to successful advertising and marketing lies in being ‘creative’. Start by establishing your own website or an eCommerce store. There you can carry your product line with your own rules. Have an organic search and outreach strategy in place.
Focus on bringing loyal customers. For the CBD industry, it’s always better to invest in loyalty programs rather than relying on paid ads. Don’t forget to research and understand your state/local laws since every market is unique.
Securing a Competitive Edge
Always focus on creating a quality product that can pass the close scrutiny by both the users and the regulators. To gain the trust of your customer, have third-party lab results ready in order to vouch for and authenticate your product’s quality.
If Done Right, CBD Can Be A Lucrative Business
If you approach things wisely, growth opportunities in the CBD industry are practically endless. Cannabis is one of the fastest-growing industries in the US and cannabidiol is making headlines every single day.
Thanks to the passing of the 2018 Farm Bill, CBD products are flourishing faster than ever.
Just be creative, know your market, perform research and due diligence, and you are sure to get success.